Question
Proli located in Vidalia, GA, uses FOB destination as part of its shipping terms. During the December 31, 2019 year-end audit, you noted that a
- Proli located in Vidalia, GA, uses FOB destination as part of its shipping terms. During the December 31, 2019 year-end audit, you noted that a shipment to Miracle Heel located in Hong Kong made on 12/31/19 was reported as income in 2019.
You obtained the following information about this transaction:
Accounts Delivery Product
Receivable Expense Sales Cost
16,120 330 16,450 11,130
Required: Was the accounting for this transaction appropriate at 12/31/19? If not, propose the entry(ies) necessary for Proli to correct reflect the transaction in its books.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Frank Woods Business Accounting
Authors: Frank Wood, Alan Sangster
9th Edition
0273655523, 9780273655527
